Establish a scalable take-back process Getting sufficient used parts and products back is often an important part of lifespan extension solutions, so building a scalable take-back process right from the start is critical. Incentivize participation to engage customers at scale and reduce any potential participation barriers. For example, in the consumer technology hardware industry, lack of trust in data security is a key barrier for returning used laptops and mobile phones, which needs to be addressed to make the take- back process successful. Scaling across geographies is a challenge, as handling products at their first end of life is often heavily regulated (for example, in cross-border waste management regulation). Around 30% of businesses report that regulations and standards are a key enabler and an important consideration when setting up the take-back process. Establishing a network of local partners for handling logistics and repairs helps to comply with local regulations, makes for shorter supply chains and ensures faster turnaround times. In fact, around 60% of businesses identify partnerships as a key consideration when developing lifespan extension solutions.D Agilent offers several incentives for customers who wish to return their used products to increase the number of participating customers. For example, they pay a residual value for the product or offer credits for future purchases. They make the take-back process even more convenient by, where possible, accepting the used products of competitors as well. To ensure availability across various markets while providing fast turnaround times and adhering to regulatory requirements, the take-back service is managed by local Agilent operations in each region. Capture and maximize life-cycle value Lifespan extension solutions delay the purchase of new products and often raise cannibalization concerns (mentioned by around 15% of businesses and raised during conversations with circularity thought leaders). Therefore, businesses need to identify how and where the profit pools27 are likely to evolve. They can complement the sale of first-life products with value-creation opportunities across the product life cycle. During a product’s lifetime, value may be generated by charging customers for services such as repairs, upgrades and insurance. At the end of a product’s life, businesses can also capture the residual value from components and materials, for example by monetizing post- consumer scrap or reusing parts.E HP , a global manufacturer of personal IT equipment, has found a way to successfully monetize refurbished devices, increasing the return on investment for customers while advancing their sustainability goals. Customer demand for solutions that combine both new and multi-life-cycle IT products is being driven by new regulations, sustainable procurement requirements, and lower total cost of ownership targets. Circular Transformation of Industries: Unlocking Economic Value 18

Circular Transformation of Industries 2025